Mutual Fund Store Sells After All -- And Warburg Pincus Is The Buyer
- Created: Monday, 01 August 2011 06:38
Adam Bold has now admitted to selling a majority stake in the firm, the nation's third-largest RIA.
Previously, he was more interested in denying the idea that he was negotiating any sort of transaction.
Regardless, he hopes that the backing of Warburg Pincus -- which manages a private equity portfolio worth $30 billion -- will give the Mutual Fund Store more juice for added growth.
Since the last time we covered the company, it's already added $100 million in retail investor accounts and now manages $6.5 billion.
Terms of the deal were not discussed. Industry gossip originally had Bold wanting to sell the firm for $300 million or more.
That would represent four to five times annual revenue, which seemed more than a little rich at the time.
Still, the gossip got the existence of this deal right, so maybe the price tag was in that ball park after all.
Bold will keep a minority stake and operational control of the company.